ASIC has released its latest report outlining decisions on relief applications covering the period 1 October 2014 to 30 January 2015.
Businesses frequently approach ASIC for assistance to help make the law work better for them. ASIC uses its discretion to vary or set aside certain requirements of the law where there is a net regulatory benefit or where ASIC can facilitate business or cut red tape without harming other stakeholders.
This is a key part of ASIC's function and between 1 October 2014 to 30 January 2015, ASIC approved 542 relief applications.
Report 435 Overview of decisions on relief applications (October 2014 to January 2015) (REP 435), aims to improve the level of transparency and the quality of publicly available information about decisions ASIC makes when asked to exercise its discretionary powers to grant relief from provisions of the:
- Corporations Act 2001 (Corporations Act), or
- National Consumer Credit Protection Act 2009 (National Credit Act)
REP 435 also discusses the various relevant publications released by ASIC during the four months.
The report summarises examples of situations where ASIC has exercised, or refused to exercise, its exemption and modification powers under the Corporations Act. The report also highlights instances where ASIC has considered adopting a no-action position regarding specified non-compliance with statutory provisions.
Finally, the report provides examples of decisions that demonstrate how ASIC has applied its policy in practice which ASIC thinks will be of particular interest for capital market participants and for participants in the financial services industry. The report includes an appendix detailing the relief instruments referred to in the report.
ASIC can modify or set aside certain provisions of Chapters 2D (officers and employees), 2G (meetings), 2M (financial reporting and audit), 5C (managed investment schemes), 6 (takeovers), 6D (fundraising) and 7 (financial services) of the Corporations Act.
In limited situations, ASIC may also consider providing a no-action letter when instances of non-compliance with certain statutory provisions have been brought to ASIC’s attention. A no-action letter states to a particular person that ASIC does not intend to take regulatory action over a particular state of affairs or particular conduct. The factors that ASIC will consider when dealing with a request for a no-action letter is set out in Regulatory Guide 108 No-action letters (RG 108).
Applying for relief
Applications for relief must be in writing and should address the requirements set out in Regulatory Guide 51 Applications for relief (RG 51) (and any other Regulatory Guides relevant to the application).
Applications can be submitted electronically to firstname.lastname@example.org. Fees are applicable for relief applications.